UK competition regulator proposes easing rules on Apple and Google in-app payments

Britain’s competition regulator has put forward a proposal that would loosen current restrictions on how app developers handle payments inside the Apple App Store and Google Play. Under the plan discussed in a report published Tuesday, app makers would be allowed to steer users to other payment routes outside the two major platforms, a change designed to cut take rates and improve competitive pressure in the app economy.

The proposal targets the fees that app stores charge for in-app purchases and subscriptions, as well as the limitations that platforms can impose on developers’ ability to communicate with users about cheaper or alternative checkout options. By allowing more direct “user steering” to alternative payment methods, the regulator is effectively trying to weaken app stores’ pricing power over digital purchases.

While the report frames the initiative as an effort to boost competition, it also indicates a broader regulatory challenge for large mobile ecosystems. Apple and Google have long relied on app store payments as a central control point for distribution and billing, and changes to payment rules could ripple across developer relationships, promotional practices, and revenue-sharing arrangements.

For Apple, app store payments are deeply connected to the company’s Services business, which includes transactions and subscriptions facilitated through iOS and the App Store. The company has previously defended its platform model as a way to protect users and maintain a consistent shopping and billing experience, but this specific report does not include any attributed Apple comments or a disclosed internal estimate of financial impact from the proposal.

For developers, the practical question is whether app makers would be permitted to market external checkout options while still complying with platform terms and any regulator-imposed conditions. If the rules are adopted in the proposed form, developers could redesign funnels, pricing, and trial-to-subscription flows to reduce reliance on app store billing, shifting negotiating leverage and potentially changing how marketing budgets are allocated.

The regulator’s announcement, as reported, does not clarify the full scope of the change, including what exact conditions would apply, how enforcement would work, or whether there would be limits on how developers can describe or promote external payments. It also does not spell out timelines, which matters because app store policies are implemented through technical and contractual mechanisms that typically require coordination with platform operators.

Sector-wide, the proposal adds another data point to the regulatory push across Europe and beyond to reduce the most restrictive aspects of platform gatekeeping. It also underscores that, for consumer app distribution, the key battleground is increasingly the billing layer, where fees and platform control converge.

Still, until the regulator publishes more complete documentation and the outcome of any consultation is known, the market implications remain uncertain. What is clear from Tuesday’s report is the regulator’s direction of travel toward allowing developers more flexibility to move users away from in-app store checkout, with competition and fee pressure cited as primary goals. Markets will likely watch for Apple and Google responses, any carve-outs, and whether the proposal survives the next procedural steps.